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OC Oyo

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GROUP

PRESENTATION
GROUP 10
PRESENTATION DONE BY :

•ASHISH SINGH – P181A08


•DIVYANSHU MIRANI – P181A15
•NIHARIKA GROVER – P181A32
•SIMRANJEET KOCHAR – P181A51
•TUSHAR SHARMA – P181A54
OYO ROOMS
• OYO rooms, commonly known as OYO
was founded by Ritesh Agarwal in 2013
and in merely 5 years since the inception
of the company it already has a PAN
BACKGROUND India presence and recently it even
OF OYO ROOMS started it’s operations in china
• With a single property in Jan 2013 and
now with 8500+ properties, OYO has
marked it’s presence in the Hospitality
Industry
WHAT DO WE THINK?

• We as management students think that


OYO has still a huge market which is yet
to be tapped and the rate on which it is
growing is directly in proportion with this
objective
• So, We think that the company has bright
prospects in the future due to various
factors and we would analyze those
factors and even list out the opportunities
and threats the company has to face
No Investment in Infrastructure

Acts as an intermediary between the


customer and the property owner
OYO
ROOMS- Budget Stays
INDIAN AIR
BNB? Complimentary Breakfast

Presence in Tier II and Tier III cities


WHY DOES OYO HAS AN EDGE?

NO Investment- Generally it is seen that, Hospitality Industry


requires huge sum of investments but the model OYO follows
is, it acts as an intermediary between the consumer and the
property owner, and due to this the funds can be diverted into
functions like marketing and customer engagement
“OYO Welcomes Couples”: OYO started this marketing
campaign, and “Link”, within a few days it gained 50K plus
views
PAN India Presence : OYO has
a presence in 80+ cities in
India, with mostly targeting tier
II and tier III cities, with the
WHY DOES service available at affordable
OYO…CONTD. cost OYO’s revenue two folded
Introduction of OYO
townhouse: OYO townhouse
are owned by OYO and
managed by it’s staff to provide
better service to the clients
FUTURE PROSPECTS
OF OYO
OYO recently moved to event hosting space and provided
banquets to it’s customers at a affordable cost, this segment
of market has huge potential which was yet to be explored

WEDDING
BANQUETS
The company believes “wedding banquet” segment as
fragmented, low yield and broken service business.

OYO would focus on digitizing the wedding banquet


sector and provide the service at an affordable cost
OYO has already started it’s operations in China which
is a huge market but they have a stiff competition in the
budget hotel segment

GLOBAL
PRESENCE Would require fresh round of funding and the company is in
talk with softbank to raise up $800 million to accelerate
business in India and expand internationally

Already functioning in Malaysia and


Nepal
Introduction of a membership scheme
named “OYO WIZARD”
OYO
WIZARD
The members of this club would receive an additional
discount of 10% and receive extra benefits such as extra
OYO money

OYO is planning to widen it’s customer


base and retain the original customers
OYO planned to penetrate into travel packages segment
to compete with Makemytrip and other travel agents

TRAVEL
PACKAGES With categories like ‘nature’, ‘honeymoon’ and ‘budget
trip’, OYO plans to target different customers according to
their requiremnents

Cater to National and International


travel needs of the customers
An AIR BnB model, where anyone
OYO HOME can register their property and take a
charge for it’s use on a daily basis

The company faces serious competition


from AirBnB which is already
established it’s brand holding in India
SWOT ANALYSIS
Standardization : The properties are owned by
various providers but they are standardized and
STRENGTH they follow some protocols as guided by OYO
S

Growing Network : Starting from one room and


now with 8500+ properties in India, OYO is
clearly growing at a compounded rate, and that is
it’s one of the major strengths
Innovation: From budget stays to wedding
banquets to global expansion, OYO has
STRENGTHS showed innovation in every business strategy
.. CONTD..

Subsidizing Hospitality Industry : With rooms starting at


999 inclusive breakfast is something of a benchmark that the
industry has received, with OYO the hospitality industry has
shifted it’s focus from Money Making to Customer
Satisfaction
Poor Service quality: a lot of customers complain about this
issue (as seen in OYO budget stays reviews). With room @ 999
WEAKNESSES INR it is difficult for OYO to even provide with proper service
that a customer expects, this can be considered as an area of
improvement for the company

Tight Margins: Property owners can even tie


up with other branded agents like ‘Go Ibibo
stays” and OYO can’t do anything about it
Global Expansion: OYO has already expanded in
China with ride hailing giant DIDI and existence in
OPPORTUNITIES 26 cities. It is now setting up businesses in
Indonesia, UK and Europe.

Growing demand for aggregators: As the world reels from the


aftermath of repeated recessionary trends, pay cuts, and job losses,
most higher end hotels are struggling to balance supply and demand.
This increases the scope for aggregators like Oyo since most hotels
would prefer to take external support for sourcing new business.
Competition: Competition is a threat prevailing for any kind of
business, but in case of hospitality it is most evident. One bad
THREATS service and the customer would try not to book you next time.
Major competitors are Goibibo, MMT, Stayzilla, Yatra.com and
Paytm.

Safety Concerns : Multiple researches are done by OYO


in this regard. OYO does not guarantee safety at any point
in time for its hotels they have a moral commitment to
ensure that no such untoward incidents happen.
SUGESSTIONS THAT WE
RECOMMEND
• OYO should improve the service quality in the low budget
rooms they offer
• The property owners should get some higher margins on
their property so that they would be motivated for
expansion
• OYO should improve it’s presence on social media so that
they could receive continuous feedback from the consumers
• OYO does not target the luxury hotel segment, so they are
losing out in that category
FUTURE OF OYO

• OYO will grow as a company as it also has the advantage of being


among the few start ups that created a global brand in India.
• With many investments in the start up, recently from Soft
Bank,OYO is raising it’s value.
• To retain their position in the market, OYO should focus
aggressively on digital marketing strategies.
• OYO recently got a billion dollar funding for upscaling it’s
international operations
THANK YOU

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